When must an SDF be submitted?
When a transfer of a real property interest is made for valuable consideration, a form must be submitted, regardless of whether any conditions apply. Even if a transfer is made without consideration but any of conditions B(12) through and including B(15) on the form apply, a form must be submitted. If a transfer is made without consideration and none of the conditions B(12) through and including B(15) apply, then no form need be submitted (and thus there is no fee to pay).
When is an SDF not required?
The following items do NOT require an SDF: Security interest documents, such as mortgages or trust deeds; Leases less than ninety (90) years; Agreements and other documents for mergers, consolidations, and incorporations involving solely non-listed stock; quitclaim deeds, not serving as a source of title; A transfer for no consideration or a gift, or when rerecording to correct prior recorded document; Public utility or governmental easements or right-of-ways.
Where do I file an SDF?
IC 6-1.1-5.5-3 requires a party to submit the SDF to the county assessor, who is responsible for reviewing the form for accuracy and completeness. Each county specifies the method of the filing. For the most recent listing of where to file for a county, please see http://gatewaysdf.ifionline.org.
Is there a fee to submit an SDF?
Generally a fee of $10 must be paid to the county auditor when a form is submitted, but no fee is charged when the transfer in question is to a charity, not-for-profit organization, or government, or occurs through a conveyance document falling within the second or third categories described in the question "What is a conveyance document?" below.
Which Conditions on the SDF form trigger a filing fee?
Conditions B(1) - B(11) are subject to a disclosure and filing fee and conditions B(12) - B(15) are subject to a disclosure but not a filling fee.
Where can I find an electronic copy of the SDF form?
The electronic copy can be found at this website: https://forms.in.gov/Download.aspx?id=7477
How many parcels can be submitted on one form?
The general rule is one form per parcel, one fee per form. There is an exception, however, in the event that all parcels are contiguous, and within the same taxing district. In this case, one form can be used, and only one fee is charged.
If two parcels are separated by a road, are they considered contiguous?
No, two parcels separated by a road are not considered contiguous for the purposes of the sales disclosure statute.
If you are preparing an SDF and the property has 13 parcels where do you list the additional 11 parcels? The form only has room for two parcel numbers, Part 1 boxes A and B.
You may use additional copies of the first page. To be on the same disclosure the properties will need to be contiguous, located in the same tax district, and all transferred on the same deed or other conveyance document.
If all the contiguous parcels are on one form, do I have to split the value?
No, if all of the parcels are filed on one form, the law allows that one parcel value can be used.
I have a transaction that requires three different SDFs because the parcels are not contiguous, but they were all sold for one price in one transaction. How do I split the value?
If the parcels are on different forms, the value of each parcel in the transfer needs to be broken out. This does not have to be a full appraisal; a good-faith estimate of the value of each parcel is sufficient.
What is a conveyance document?
Under IC 6-1.1-5.5-2, a conveyance document can fall into one of three categories. First, certain instruments that purport to transfer a real property interest for valuable consideration: documents, deeds, contracts of sale, agreements, judgments, leases including the fee simple estate for a period in excess of ninety (90) years, quitclaim deeds serving as a source of title, and other documents presented for recording. Second, documents for compulsory transactions as a result of foreclosure or express threat of foreclosure, divorce, court order, condemnation, or probate. And third, documents involving the partition of land between tenants in common, joint tenants, or tenants by the entirety.
What is not a conveyance document?
Under IC 6-1.1-5.5-2, the following are not considered conveyance documents: security interest documents such as mortgages and trust deeds, leases that are for a term of less than ninety (90) years, agreements and other documents for mergers, consolidations, and incorporations involving solely nonlisted stock, quitclaim deeds not serving as a source of title, and public utility or governmental easements or rights-of-way.
When can a quitclaim deed not serve as a source of title, and therefore be exempt from filing?
There are legitimate circumstances under which a quitclaim deed that does not convey title still would be filed with the county. For example, the deed below: “This Indenture Witnesseth That Blanche E. Hollingsworth, releases and quit claims to Blanche E. Devereux, an adult, in consideration of 10.00 and other valuable considerations, the following described real estate.” In this case, the deed was presented after marriage when the party legally changed her name. The deed itself doesn’t convey title, as both parties are the same person—it simply clarifies the ownership for the chain of title. There are other instances, however, where these may be filed. If a county auditor has a question about a form being filed, he or she should contact the Department for further assistance.
The conveyance was for no consideration. However, the deed says “for $1 and other valuable consideration.” How should we proceed?
In the case of a gift or other non-value transaction, the deed may still say that it was for $1, or $10, and other valuable consideration. This is a boilerplate statement that many attorneys use in drafting conveyance documents, but generally does not have any bearing on whether it is “valuable consideration” for the purposes of the sales disclosure statute. If the deed brought to the auditor’s office for filing says for $1 or $10, the auditor should ask whether the property was transferred for consideration and if so, for the completed sales disclosure form. If the individual says that the transaction was a gift, the auditor should accept the deed. If the transaction was for consideration, an SDF needs to be completed if not already done so.
Is an affidavit a “conveyance document” under I.C. 6-1.1-5.5-2?
No. When filing an affidavit, a sales disclosure form is not required.
Under Condition B(14), what are documents “involving the partition of land between tenants in common, joint tenants, or tenants by the entirety”?
In these splits there are often appraisals, allocation of values, etc. Sometimes uneven splits could be tantamount to a sale for valuable consideration and then a fee would become due. While not a sale for valuable consideration in the pure sense, the statute provides for an SDF filing, without a fee, in these situations so that this information can be captured at no incremental additional cost.
Is an SDF required with a land contract? If so, what is the sales price?
Yes, an SDF is required with the recording of a land contract. The sales price is the original land contract amount. Furthermore, at the time a deed is recorded to complete the land contract, the sales price is the original land contract amount.
If mortgages are not subject to the SDF, why does the form require information regarding seller paid points, interest rates, etc.?
The mortgage information in section C(8) – C(13) is only applicable when the seller is providing financing to the buyer.
How should a foreclosure sale, such as a sheriff’s sale, be processed? When is the form fee exempt?
A sheriff's sale is only fee exempt on the first transaction; that is, from the sheriff to the bank. Subsequent transactions no longer relate to foreclosure, and are not fee exempt (unless, of course, they go to a government/NFP, etc.). All sheriff sales have a value amount, as there is an amount that the property is sold for. Example 1: Property transfers from Sheriff Smith to First Financial Bank. An SDF is required (with price of bid listed as the sales price)-condition (B)1 and condition (B)12 are checked yes, and so no fee is collected. The property is then sold by First Financial Bank to Second Financial Bank. In this case, condition (B)1 is checked yes and condition B(12) is checked no. The sale from First Financial Bank to Second Financial Bank is not associated with the foreclosure (even though First Financial Bank only has title because of the foreclosure). Example 2: Property transfers from Sheriff Smith to First Financial Bank. An SDF is, again, required just as above, with conditions (B)1 and (B)12 checked yes and no fee is collected. The property then goes from First Financial Bank to HUD. In this case, then, an SDF is required, but no fee is collected.
This transfer is actually a split. What should I put for the parcel number?
For parcel splits with no number assigned, the subdivision and lot number of the parent parcel are acceptable. If the parent parcel is used, you should make a note in the special circumstances area of the form.
Does a “land swap” require an SDF, such as farm ground for farm ground?
Yes, this type of transaction requires a disclosure. Please use the special circumstances box in Part C-3 to give as much information as possible about the terms of the exchange.
How should easements and right-of-way grants be handled?
An SDF is no longer required to be collected for government and utility easements or right-of-way grants. Easements and right-of-way grants in all other cases, however, are still considered conveyance documents under statute and must have an SDF filed if they are exchanged for valuable consideration.
Do transfers from a testamentary trust require an SDF? What about non-supervised distributions from an estate?
Neither of these documents require a sales disclosure form to be filed with the recording.
Do Transfer on Death deeds require an SDF?
Generally, no. These are unique documents (created by statute in 2009) that are not conveyances for the purposes of the sales disclosure statute.
The online form depicts the first names of the buyer and seller as required fields. What if the buyer or seller is a business?
If the buyer and seller are businesses, there is a box located on the form to name them. In the first name and last name box, please place the name of the person signing the form on behalf of the company. You can then place the name of the business or other entity on the business name line below.
What is the “Unique ID” number?
The Unique ID field is a function of the electronic software. When the form is submitted online, it is automatically given this number. It is a system-generated number: when the user (title company, purchaser, or assessor) fills out the application, it will automatically populate that field based on the county. For example, Starke County would be 75-2008-00001 (subsequent records are 00002, 00003, etc.) If a form is submitted by somebody in longhand, there won’t be a Unique ID on that particular form; when the assessor’s office enters the form into the database, however, that number will be generated.
What personal property should be included in the sale? How am I to arrive at the value?
Personal property, for the purposes of this question, is any property (refrigerators, washers, etc.) included in the price of the sale that is not considered part of the value of the real estate itself. This does not have to be an exact value; rather, it should be a good-faith estimate of the value of this property.
The parcel I’m buying is vacant land and doesn’t have a mailing address. What should I list as the address of the property?
If the property does not have a mailing address, the form should list the road that the parcel faces; for example, “Main Street,” followed by the city, state, and ZIP code. If it is a rural parcel, it is acceptable to put the name of the road, e.g., “200 N.”
Should the tax billing address on Page 1 of the form be the current, pre-transaction mailing address for tax bills or should it be the tax billing address of the buyer after conveyance?
The tax billing address should be the mailing address for the new owner, if different from the address of the property.
What number is required in Item 1 in Part 1?
The state 18-digit property ID with dashes/periods should be used in Item 1. If no State ID has been assigned to that parcel, the subdivision and lot number can be used instead.
What is considered an accurate and complete SDF?
IC 6-1.1-5.5-3 specifies that a form is accurate and complete if the county assessor does not have substantial evidence the information is inaccurate, the form conforms with that prescribed by the Department, and the form is submitted to the county assessor in a format usable to the county assessor. If the form submitted is not entirely complete, the county assessor must notify the party in writing as to what items are incomplete. The parties have thirty (30) days from the date of the written notice to provide the information.
Are all the pages required when submitting an SDF?
No, only the three (3) pages with information regarding the sale are required to be submitted. The instructions and details of credits and exemptions need not be submitted.
What if the parties do not have a phone number?
Since the statute requires a telephone number be provided on a sales disclosure form, there are two ways to approach this situation: (a) Ask the party to provide a cell phone number or the phone number of a relative or friend who can reach them. Remind them the phone number is confidential; or (b) If the party has no cell phone and no other phone number to provide, the party should explain the circumstances to the county assessor who then should accept the form without a phone number. The county assessor would then provide a brief explanation in the “special circumstances” data field when the assessor submits their sales disclosure form data file to the Department.
What if one or more of the parties does not have an email address?
Email addresses are not required by statute to be provided by the parties. However, if the parties’ preferred method of communication is email or they would like to receive tax bills via email, they should provide it.
Can SDFs filled out in longhand be accepted?
A county may choose to accept longhand submissions. In the event that a form is submitted longhand, the county assessor’s office will enter the data in the database.
How do you make a change to an SDF that has been submitted?
Contact the county assessor office of where the sale took place. Please do not resubmit a corrected version without approval from the county official.